IX 
SERIES CORRELATED WITH EARNING ASSETS 
IN Chapter III, the earning assets of member banks, by dis- 
tricts, are divided into (1) loans and discounts, and (2) invest- 
ments. While the same classification is used in this chapter, 
the purpose of studying the amounts, expressed as ratios, is 
different. In the former chapter, it was the norms and trends 
of the ratios themselves, differently compared, which were con- 
sidered; in this it is the manner in and the degree to which a 
variety of series of data, all having to do in one way or another 
with bank operation, are correlated with variable ratios of loans 
and discounts, and of investments to earning assets. The way 
in which the variables—both independent and dependent—are 
treated, in order to accomplish this purpose. is described in 
Chapter VIII. 
I. SERIES CORRELATED WITH RATIOS OF LOANS AND DISCOUNTS 
TO EARNING ASSETS 
The independent variable in the stub of Table ¢7 is the series 
of percentage amounts by which the yearly district ratios of 
loans and discounts to earning assets deviate from their respec- 
tive seven-year averages. The items named in the caption head- 
ings are the dependent variables, for each of which are given 
the net average percentage deviations by which the yearly ratios 
differ from their own seven-year district levels, selection of the 
districts being made according to the classification provided for 
in the stub. 
That is, the table contains the material for answering the 
following question: What, on the average, are the types and 
the net average amounts of variation from district levels, for 
the series named in the caption, associated with the types and 
percentage amounts of variation for the series named in the 
stub? The averages of the paired deviations in the correlated 
series show that (1) high and low ratios, respectively, of loans 
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